Tata Consumer Profit Rises 16% to 470 Crore Rupees in Second Quarter
Key Facts
Tata Consumer reported a 16% increase in group net profit to 470 crore rupees for the quarter ended September 30, 2026, while revenue from operations grew 14% to 5,661 crore rupees. The company said consolidated EBITDA rose 18% to 794 crore rupees. The results marked a second consecutive quarter of double-digit revenue growth in fiscal 2026-2027, according to the managing director and chief executive. The executive attributed the performance to volume growth in the India business and disciplined execution. The figures showed simultaneous improvement in revenue and profitability, while the stock rose in morning trading after the results were published.
Group growth was supported by sales volumes in the India branded business, which recorded underlying growth of 11% during the quarter. The company said its growth businesses increased 40% and accounted for 38% of its India business. In that segment, revenue from the Tata Sampann brand rose 57%, driven by strong volume growth. Salt revenue also grew 15%, which the company attributed to volume growth. The results reflect contributions from several Indian businesses to expansion, with performance varying across products.
Tata Starbucks posted a 15% increase in revenue, which the company described as its highest comparable-store quarterly growth in several quarters. It said the café chain recorded its fifth consecutive quarter of positive comparable-store sales growth. It ended the period operating 505 stores in 81 Indian cities. By contrast, Indian tea volumes were flat amid weak category demand, while revenue declined slightly. The contrast between growth in cafés and salt on one hand and subdued tea on the other highlights uneven demand momentum across the company’s portfolio.
Outside India, revenue from international businesses rose 7%, but declined 2% on a constant-currency basis, against a high base. Tata Consumer said category consumption in the United Kingdom was affected by a prolonged heatwave. At the margin level, consolidated EBITDA margin was 13.8%, up from 13.5% in the same period a year earlier, according to Business Standard. This puts 18% growth in operating profit alongside a modest margin improvement from a year ago. Weak demand in some markets and uneven performance across categories remain part of the quarter’s picture alongside growth in India.
Tata Consumer shares rose 4.2% in intraday trading on October 27, after opening at 962.70 rupees compared with the previous close of 936.60 rupees on October 26. Business Standard reported that the stock reached 976.30 rupees during the session. This corrects the initial version of the report, which said the shares had risen 7%; the published report recorded an intraday gain of 4.2%. The same source did not substantiate the claim that the stock had ended a three-day losing streak. The move followed results showing growth in profit and revenue and a year-on-year improvement in EBITDA margin.
Analysts said the full impact of tea and salt price increases would be seen in the third quarter of fiscal 2026-2027. Investing.com quoted management as saying the company had raised tea prices by a cumulative 8% to 10% from the first quarter to the second quarter. Management also said it expected Indian tea and coffee volumes to return to low- or mid-single-digit growth as pricing effects eased and seasonal demand improved. The company reaffirmed its fiscal 2026-2027 target of increasing EBITDA margin by 50 to 70 basis points, according to Investing.com. Over a longer horizon, management said it expected the EBITDA margin of the India business to move toward a range of 17%-20% over the next three to five years.